Organizational Behavior Second Midterm CLABE UNIBO, Sintesi del corso di Comportamento Organizzativo

Scarica Organizational Behavior Second Midterm CLABE UNIBO e più Sintesi del corso in PDF di Comportamento Organizzativo solo su Docsity! 1 Ch. 7 – Culture: Na onal and Organiza onal Culture, in the broad sense, refers to the social context within which humans live. There are different ways to characterize na onal cultures. One, a varia on of the stereotype approach, is the use of cultural metaphors (Germany – symphony orchestra, Italy – opera, Japan – Japanese gardens). The Hofstede model on na onal culture The most important model of the way culture affects organiza ons and work is the Hofstede model of culture: culture is the pa erned ways of thinking, feeling, and reac ng, acquired and transmi ed mainly by symbols, cons tu ng the dis nc ve achievements of human groups including their embodiments in ar facts. Culture is to human collec vity what personality is to an individual. The dominant values of a country are called the na onal character; the degree of homogeneity ad strength of the dominant personality orienta ons in the society is called modal personality. The modal personality of a country can be analysed under 5 different dimensions (dimensions of na onal culture): 1. Uncertainty avoidance The term relates to the tolerance for devia ons from accepted behavioral prac ce. Society high in uncertainty avoidance tend to prefer rules and to operate in predictable situa ons, prefer stable jobs, secure life, avoidance of conflict, have lower tolerance for deviant persons. 2. Power distance Is the degree to which differences in power and status are accepted in a culture. E.g. French are rela vely high in power distance ( French managers tend not to interact socially with subordinates and do not expect to nego ate work assignments with them). In low power distance countries such as the USA, powerful individuals can be forced out of their posi on or be challenged by less powerful individuals or groups. 3. Individualism – collec vism It refers to whether individual or collec ve ac on is the preferred way to deal with issues. In a collec vist society, you are expected to interact with members of your group. In an individualis c society, there is a tendency for person to shirk when tasks are assigned to a group rather than individuals. 4. Masculinity – femininity It refers to the degree to which values associated with stereotypes of masculinity (aggressiveness, dominance, …) and femininity (compassion, empathy, emo onal openness, …) are emphasized. High masculinity cultures tend to have sex differen ated occupa onal structures and a stronger emphasis on achievement, growth, etc., rather than job sa sfac on, working condi ons, etc. 5. Long- vs short-term pa erns of thought It reflects a culture’s view about the future. In countries with a long-term orienta on, planning has a longer me horizon and firms are willing to make substan al investments. There are groups of countries that share similar modal personali es, language, geography, religion. These are called country clusters. 2 Organiza onal consequences of na onal cultural differences Culture affects organiza ons and those in them under many aspects:  Managerial philosophy and culture Cultural differences will be reflected in managerial philosophies. Laurent conducted and analysis of managers from different countries (p.120)  Leadership and managerial style There are cultural differences in the reac ons to management and leadership styles. For example, in Germany and France, leadership and control tend to be more centralized than in the Anglo-Saxon view of management (they delegate more and want to be informed only of excep onal events). Managers take different approaches to problem solving. American managers are more direct, Europeans will take a more strategic theore cal look at problems.  Organiza onal design Cultural dimensions (see page 1) might affect the organiza onal structure. For example, high power distance means greater acceptance of strong authority systems and more willingness to accept orders from superiors.  The effects on mo va onal strategy Mo va onal approaches that work in one culture may not work in others because of differences in values and preferences. For example, La n countries, Germany and southern European countries put more emphasis on job security and fringe benefits; northern European countries on leisure me and needs of employees; English speaking countries individual achievement is more emphasized than security.  Communica on Effec ve communica on between people from different countries is difficult, also for the different meaning that they give to words. Organiza onal culture The organiza onal culture is the pa erned way of thinking, feeling, and reac ng that exists in a specific organiza on. Just like countries, organiza ons in the same society will have different organiza onal cultures. For the organiza on itself, the most direct sources of culture are organiza on-specific factors. The organiza onal culture is a direct reflec on of its own modal organiza onal personality (the degree of homogeneity and the strength of a par cular personality orienta on in that organiza on). It results from 4 factors: 1. Values that people develop during socializa on to accommodate to the types of organiza ons in the society. 2. Selec on processes screen out many people, and organiza on socializa on changes those who join: a certain degree of homogeneity develops in every organiza on. 3. Rewards reinforce some behaviors and a tudes and not others. 4. Promo on decisions take into account also the personality of candidates. Other factors affect organiza onal culture, such as the industry in which the firm operates, the history of significant people in the organiza on, cri cal events that become part of the folklore of the organiza on and are a reference point for values and beliefs of members. 5 Organiza onal subcultures Most large organiza ons do not have a homogeneous culture; instead, they are usually a cluster of organiza onal subcultures that differ from each other. Members of the organiza on can iden fy with different subcultures: 1. Hierarchical subcultures They exist at different organiza onal levels and are visible in the differences in symbols, status, authority and power between managers and workers. This occurs when work at lower level doesn’t require much skills and when promo on to managerial levels requires competence and values congruent with those of the dominant coali on. The result is a management group with homogeneous values, different from those of the workforce in general. 2. Occupa onal/task subcultures They are those in which members have strong iden fica on with the others who have similar skills (even more if these skills have been developed through intensive training that require occupa onal socializa on). 3. Culturally diverse subcultures They are those in which members iden fy with others with similar racial, ethnic, or gender characteris cs, that may differ from the dominant organiza on culture. Organiza onal culture: some special cases There are some situa ons in which the effects of organiza onal culture cause serious problems for the management of a firm.  Implemen ng a culture in a new organiza on In new organiza ons, it is possible to try to shape the culture through carefully designed selec on processes, socializa ons strategy, consistent use of symbols and language. However, members will then modify the values intended by managers (most of the mes a healthy culture of a high-involvement organiza on HIO), and the culture emerges.  Mergers and acquisi ons Problems arise when the cultures of two firms involved in a merger are different and incongruent. E.g. a company with a rigid, hierarchy-based culture merging with one having a loose structure.  Changes in the environment Cultures change when there is a significant change in the firm’s environment to which it must adapt if it is to survive. This change is especially important in the dominant coali on (high management level).  Changing in exis ng culture It is very difficult to modify the culture of an exis ng organiza on, especially when embedded management a empts to change it by using consultants and formal change programs (o en the solu ons of the consultants don’t fit well with the modal personality of management groups).  Changing the CEO When a new CEO comes into a firm, a number of things usually happen and effect the culture. The result is a dominant coali on with values more similar to those of the new CEO that will begin to be reflected in the various procedures. When the current firm performance is acceptable, internal succession is a reasonable strategy (instead of a new CEO coming from outside the organiza on) because the new CEO will be already accustomed to the exis ng culture. 10 Ch. 9 – Managing Performance: The Influence of Technology and Knowledge In this chapter we will consider the differences in organiza on context and type of employee that impact a manager’s strategy in managing performance. In the following chapters we analyze the implementa on of the theories studied for the first midterm. The context of performance management Managers must be able to work with the technologies that they have at their disposal and knowledge and ability of the people in the organiza on. Performance management refers to those things that managers do to influence the effec veness of individual and group performance. Technology refers to the tools, machines, facili es and equipment a person uses in performing a task. 2 aspects of technology are important:  The stability/complexity dimension  The structural dimension (how technology is arranged and the type of work interdependence affects how it is used and thus the people that need to use it). Thompson classified organiza onal work systems as: o Long-linked work systems, high interdependence (e.g. assembly line, either of McDonald’s or of automobile industry) o Media ng work systems, several different users and several different customers are linked together and a racted to the same place (e.g. street market or eBay) o Intensive work systems, the arrangement and sequencing of work must wait un l the customer’s needs are known (e.g. home construc on or Dell computer assembly) All these 3 categories of work systems can either use very simple or very advanced technology. Ability is the capacity that a person as to accomplish a task. We consider a person’s skills and knowledge as factors in their overall ability (cogni ve ability, emo onal intelligence, perceptual and psychomotor ability). The person component (ability) combines with technology and leads to performance poten al. Managers should op mize the performance poten al of those who work for them. The work context can vary from being dominated extensively by technology or significantly by individual ability (technology-dominated or skill-dominated work). The division of labor discussed in chapter 8 results in specializa on, meaning that a person does only part of all the tasks needed to produce the output of the organiza on. There are 2 main types of specializa on: 1. Task specializa on, work is broken down into smaller components, which are then grouped into jobs and generally assigned to different people 2. Knowledge specializa on, the person, not the task, is specialized. Knowledge workers can and do perform a wide range of different ac vi es to do the work, instead of a few of specified ac vi es when tasks are highly specialized. Knowledge workers are in high-technology occupa ons. We expect the mechanis c organiza ons to have more task specializa on, and organic organiza ons to have more knowledge specializa on. Mixed-type organiza ons will typically have both. Task specialists: managing their performance The work of task specialists tends to be rela vely repe ve: the person is doing only a small part of the complete task, and the work cycle is usually short. The workers ted to be less involved with their job. High morale and mo va on are especially difficult to maintain when the work is repe ve or highly programmed. 11 Most of the work done in most mechanis c organiza ons is characterized by high task specializa on, with the problems of low intrinsic mo va on, boredom, low job sa sfac on, job withdrawal. To combat these, many organiza ons are trying to create a high-involvement organiza on (HIO). The HIO is an organiza on that promotes employee mo va on and improves effec veness of the organiza on by changing the adversarial rela onship between workers and managers with a coopera ve approach. These are 7 of the most common and important aspects of HIO: 1. Job redesign Job redesign is aimed at increasing skill variety, task iden ty, task significance, autonomy and feedback so that workers will have more meaningful jobs, a greater sense of responsibility and more feedback. 5 basic ways to redesign jobs: a. Combining tasks Combining them into larger tasks, to be assigned to teams if they are too large for one person. b. Forming natural work units Group tasks so that as much of the work possible is done by the same group  sense of ownership of the job. c. Establishing client rela onships When possible, link worker with the purchaser of the product, or find ways for the customer to give feedbacks to worker. d. Ver cal loading Adding responsibili es from higher organiza on levels. It gives the person more responsibility and control  increased percep on of job autonomy. e. Opening feedback channels Job-provided feedback occurs when the person knows how to judge performance from the job itself; management feedback comes from the supervisor or from reports (budgets, etc.) 2. Cross training In cross training, workers learn the various skills necessary to perform the required tasks of the group. Training also becomes an instrument of worker socializa on. 3. Self-directed teams Self-directed teams place even more responsibility on the individual team members, and usually have responsibility for more decisions once reserved for management. Teams are usually headed by one of the more highly skilled members, and leadership may rotate from person to person. Some mes they have responsibility for controlling other members and recommend disciplinary ac ons. 4. Innova ve compensa on prac ces Different compensa on prac ces to increase workers’ involvement: a. Gainsharing Incen ve plans to provide bonuses to employees based on profit improvement, cost savings or produc vity increases achieved as result of the employees’ ideas or increased work effort. “Scanlon Plan” also involves a process of workers involvement (par cipa ve decision making etc) b. Skill-based pay Workers are paid for the skills they possess, not for the job on which they are working (based on the idea that a more versa le worker is more valuable to the organiza on). It increases flexibility since workers are more willing to move to different jobs as needed. c. Team-based incen ves They have to purpose of reinforcing the concept of team. Problem of people that do not contribute equitably to team performance (“free rider”). 14 Ch. 10 – Conflict One of the most difficult skills of managing OB is to manage conflict. Up to a certain level conflict can also be useful and necessary. The nature of conflict Conflict includes disagreement, the presence of tension, or some other difficulty between two or more par es. It can be:  Between individuals or between groups  Public or private  Formal or informal  Approached ra onally or irra onally Conflict is a dynamic process that involves several stages. 1. Antecedent condi ons of conflicts The condi ons that cause or precede a conflict episode (e.g. an aggressive act). They can also be subtle (e.g. pressures on a produc on dept. may produce frustra on). At this stage, conflict may remain below the surface. 2. Perceived conflict The par es must become aware of a threat for the conflict to progress. People might also perceive a threat when none is there. At this stage, the par es tend to define the issues and start looking for ways to resolve their differences. 3. Manifest conflict When people react to the percep on (e.g. threatening to do something, aggressive ac ons, slam the door, …) 4. Conflict resolu on or suppression Par es may agree about how to solve their difficul es and even take steps to prevent future conflicts. Other mes, conflict is suppressed rather than resolved (when par es avoid strong reac ons or try to ignore each other when they disagree). 5. A ermath Whether conflict is resolved or suppressed, feelings remain, varying based on the ways in which conflict is manifested or resolved. Some mes food feelings and harmony results, other mes the conflict a ermath can also result in poorer working rela onships. Managers who take a short-term perspec ve on conflict without considering history o en fail to understand the true cause of conflict that occurs in their organiza on (e.g. a single incident of non-coopera on is seen differently vs someone who has a long history of conflict). There are 3 different viewpoints on conflict: 1. “Conflict is preventable” by making employees adopt a coopera ve a tude and if managers create posi ve working rela onships. 2. “Conflict is inevitable”: it is impossible to eliminate it en rely, for example because not all organiza onal goals are compa ble and because of organiza onal design (it creates department, each one with its point of view). 3. “Conflict is healthy” because it s mulates crea ve approaches to resolving problems and making decisions. At op mum levels of conflict (moderate) there are ac ve a empts to improve quality and increase efficiency; tensions and frustra ons are accepted and channelled into produc ve, rather than destruc ve, effort. 15 The causes of a conflict must be understood and, if possible, changed. There are 3 major categories of causes of conflict: 1. Difference in individual characteris cs Differences in individual values, beliefs and a tudes can be a source of conflict (union leaders will value employee welfare and company’s profit differently from managers). Also differences in needs and personali es can lead to a conflict. Perceived differences in power and status are o en the cause of conflict in organiza ons, as some individuals feel threatened by the power of others. 2. Situa onal condi ons The basic model of behavior (ch. 1) shows that behavior is a func on of individual and environment. Conflict is more likely when people are physically close, and when they need to interact. Conflict may also be a func on of whether agreements are needed between the par es. Also, when there is ambiguity about roles and responsibili es, conflict can arise when individuals or groups posture for posi on. 3. Organiza onal condi ons The classic rela onships between produc on, sales, and research departments. Each one has its own responsibili es and concerns. Also, “line departments” (e.g. produc on) may feel averse to “staff departments” (e.g. human resources) since they o en evaluate them and impose policies and new procedures for them. Moreover, managers can disagree on some ma ers even if they are pursuing the same goals. This is even more serious if a single employee is accountable to more than one supervisor (breaking the principle of “unity of command”). Diagnosing conflict There are many dimensions of conflict that we should consider:  The issue in ques on If the issue is seen as a ma er of principle, it will be harder to resolve. Some mes saving face becomes more important than the original issue. The easiest conflicts to resolve are those that are easily divided (e.g. money), since they allow for solu ons that can be seen as a par al victory for both par es.  The size of the stakes The bigger the stakes in the outcome, the harder the conflict to resolve. O en, conflicts regard budget alloca ons. The difficulty in resolving this type of conflicts is correlated with the propor on of budget that is being debated.  The interdependence of par es In zero-sum interdependence, a gain by one side means a loss by the other side. These conflicts are more difficult to resolve than where there is posi ve-sum interdependence (where the situa on can lead to gains for both sides).  The con nuity of the interac on When nego a ons are between par es that have no previous - and plan for future – rela onships, they are likely to be more difficult. Conflict will be easier to resolve if both par es have an interest in protec ng the long-term rela onship.  The leadership of conflic ng par es When there is a clear leader who has the authority to nego ate and make decisions, conflict should be easier to resolve than when there is a lack of clear leader.  The involvement of third par es Using third par es (mediators or arbitrators) increases the ease of nego a ng a resolu on to the conflict, since they may be able to see poten al compromises that hadn’t been considered.  The perceived progress of the conflict When par es believe that both sides are compromising and giving up something of value, conflict is easier to resolve (vs when one party feels that they have suffered more harm than the other). 16 Individual responses to conflict Conflict reac on styles: each of us deals with conflict in different ways. Each style has different characteris cs and different uses. 1. Avoiding Based on a belief that conflict is unnecessary, evil, etc., or on the deny that the conflict exists. You can withdraw by simply leaving the scene of a conflict or changing the topic of conversa on. It can be wise when issues are insignificant; when there is li le chance of success; when costs are bigger than benefits; when others can resolve it more effec vely. 2. Accommoda ng It means that you give in to the wishes of another person. This style can reflect generosity, humility, or obedience. When you are in the wrong, it permits to the correct posi on to win and is a sign of good will. It can also be wise when the other party puts lots of importance on something that doesn’t cost you a lot. 3. Compe ng You pursue your own wishes at the expense of the other party. The compe tor defines conflict as a game to be won. A forceful posi on may be the best style in crises, when there is no me for disagreement and when the issue is not debatable, or when the other party has a tendency to take advantage of you. 4. Compromising As a compromiser, you would look for feasible solu ons and will use techniques such as trading, smoothing over differences, or vo ng. You value willingness to set aside personal wishes and show sensi vity to the other person’s posi on.  arrive to a fair agreement. It is wise when the situa on is “zero-sum” (one will lose, one will win) or to find temporary solu ons. 5. Collabora ng Collabora ng is a willingness to accept the other party’s needs while asser ng tour own. You believe that there is some reasonable chance a solu on can be found to sa sfy both par es. It requires openness and trust. It is useful when each party is strongly commi ed to different goals and when compromise can be very costly. Also, when people agree on goals but disagree on the means to achieve them. By conflict management, we mean that a manager takes an ac ve role in addressing conflict situa ons and intervenes if needed. Excessive avoidance can be very damaging to an organiza on. It takes special effort to use collabora ve approaches, referred to as confronta on techniques. The following are techniques for conflict management:  Bargaining Bargainers will occasionally act compe vely and use force or threats. They will use accommoda on, hoping that a concession on their part will s mulate the other party to concede a point in return. In labor- management nego a on it is tempered by the fact that the par es must work together when it is over.  Media on/arbitra on The par es can use a third-party assistance to arrive at a solu on. If both par es agree, a mediator can be called in. arbitra on is another third-party approach to conflict resolu on. Unlike mediators, arbitrators actually make decisions that bind both par es.  Principled nego a on It emphasizes the problem and tries to make the par es in conflict collaborate toward mutual gain. 4 important elements: 1) Separate people from problem 2) Focus on interests, not posi ons 3) Invent op ons for mutual gain 4) Insist on objec ve criteria 19 People o en respond to power even when they are not threatened physically or economically, even though their ac ons could harm others. A person may possess different types of power: 1. Reward power It exists when you have control over rewards desired by another. If it is done using organiza on’s criteria, it is legi mate authority and not reward power. 2. Coercive power Exists for same reasons of reward power, but instead of rewarding another person, you threat or apply punishment (e.g. being fired). 3. Expert power Having expert power means that you are able to influence others because you possess some par cular skill or knowledge that they do not, and that skill or knowledge is necessary for the performance of their work. It is very task- and person-specific (e.g. if you are a new plant manager you have the same legi mate authority of the previous one but not the same expert power). 4. Charisma c power It occurs when individuals are suscep ble to influence because they iden fy with another person. Followers of charisma c leaders do not feel pressed or oppressed. Outcomes of influence a empts (legi mate authority or power) can either be the results intended by the influence agent or the modifica on of the rela onship between the influence agent and the target. Intended results: from an organiza on’s perspec ve, compliance should lead to organiza onally valued results (high tasks, ethical performance, …), however they can also be the wishes of just a par cular person. Usually, when legi mate authority, charisma c power, or expert power is used, the target person will react in a way intended by the power agent ( “compliance” or “acceptance”). Modifica on of rela onships: when a target of influence resists or fails to comply with the influence a empt, there is some modifica on in the rela onship between the actors. Usually, the superior could modify rela onships with those who do not comply (e.g. not promo ng them, not giving pay increase, changing personal rela onship at work, …). You can have influence for different reasons:  Organiza onally based influence, coming from your role and posi on in the organiza onal hierarchy  Personal-based influence, coming from a ributes or skills that you possess and that are desired by others o Expert power when a person has competence required by others o Charisma c power when one person becomes psychologically dependent upon another Acquiring and maintaining organiza onally based influence The power structure is the pa ern of power and influence rela onships among units in an organiza on. It is not what it appears to be on organiza on charts… in reality it is affected by a combina on of situa onal factors and individual characteris cs. What is making a sub-unit more important ( with more power) over another one? Strategic con ngency theory of organiza onal power: a sub-unit’s power depends on whether, and by how much, it controls strategic con ngencies of the organiza on. The power structure of organiza ons tends to be rela vely stable over me and to change only when there are significant changes in the environment. There are 3 condi ons that make a sub-unit strategic: 1. Coping with vola lity Sub-units that interact with more vola le, threatening and uncertain environments will have more power than those interac ng with stable ones (they have a bigger possibility of influencing policy and strategy) 2. Subs tutability of ac vi es When there is no subs tutability for ac vi es of a sub-unit, that sub-unit will be very powerful. 20 3. Workflow centrality Units with high workflow centrality not only are interconnected with many others, but also the speed and intensity with which the work is performed there affects the results of other departments (“workflow immediacy”). If you want to have legi mate authority, it is necessary to have  Competence  Self confidence  An organiza onal orienta on  Power needs To acquire reward and punishment power (that are extensions of legi mate authority), the person must have a poli cal orienta on (willingness or a empt to exert influence beyond legi mate authority). People with a poli cal orienta on have these tendencies:  Machiavellianism  Strong personalized power mo ves  Cogni ve complexity  Ar cula on skills Acquiring and maintaining personal-based influence Repe ve paragraphs. Organiza onal poli cs Organiza onal poli cs refers to the inten onal behaviors of individuals or groups with the goal of protec ng their own self-interests. The space between ra onality and ambiguity is where poli cs takes place. The percep on of high poli cal ac vity can be associated with greater stress, lower organiza onal commitment and higher absenteeism. Effec ve managers should be skilled at poli cal behaviors in the enactment of their du es. Organiza onal poli cs are likely to occur in situa ons where social and tasks condi ons are ambiguous. The most common poli cal tac cs used in organiza ons are: 1. Impression management Poli cal behaviors that have the purpose of altering and maintaining a person’s image. Ways to ins ll a posi ve impression of yourself include ac vi es to increase our visibility such as a ending important mee ngs, volunteering for extra assignment, always be the first to arrive at work, etc. Some individuals inten onally try to look bad by reducing performance, displaying a bad a tude, etc. in order to avoid responsibili es or to be rewarded (e.g. by simula ng the fact that you are overworked). 2. Blaming or a acking others the act of blaming others for your own personal failures or a acking others by a emp ng to minimize their accomplishments. This behavior is, in some measure, part of human nature (self-serving bias), but it can also be used poli cally. 3. Control of informa on Managers who secure access to important informa on and who then disseminate that informa on carefully can enhance their ability to influence others. 4. Coali on-building Finding other individuals who have similar beliefs or interests and joining forces with them to increase the power of the group and influence organiza onal ac vi es. 5. Networking Developing rela onships with others both internal to the organiza on and externally. 21 Ch. 13 – Leadership Leadership is a from of organiza onally based problem-solving that a empts to achieve organiza onal goals by influencing the ac on of others. In this chapter we focus on individuals in organiza onal posi ons with legi mate authority. Trait approaches to leadership Trait theories of leadership are based on the common idea that personali es of effec ve leadership are different from those of non-leaders. They focus on what a leader is. However, studies couldn’t find specific traits correlated with leadership in all the different situa ons examined, because a) The person not only should have a specific trait, but should also want the job b) Studies have been done in too many different situa ons c) The trait researched tended to focus on very specific traits instead of more general factors If the traits were grouped into general classes of factors, the following characteris cs of an effec ve leader would have emerged: 1. High energy and stress tolerance 2. Self-confidence 3. Internal locus of control 4. Emo onal stability and maturity 5. Personal integrity 6. Socialized power mo va on 7. Moderate achievement mo va on 8. Low need for affilia on Behavioral approaches to leadership Behavioral approaches to leadership examine how what a leader does is related to leader effec veness. We examine 2 classes of behavior:  Decision influence behaviors (distribu on of decision-making influence) Many studies have been conducted on how the distribu on of decision-making influence (between superiors and subordinates) is related to the performance and sa sfac on of individuals and work groups. Leaders were described in 3 ways: 1. Autocra c leadership The leader makes all decisions and allows the subordinates no influence in decision-making process 2. Par cipa ve leadership The leader consults with subordinates on appropriate ma ers and allows them some influence in the decision-making process. This leadership style is not puni ve and trats subordinates with dignity. 3. Laissez-fair leadership Supervisors allow their group to have complete autonomy; subordinates set their own goals with no managerial inputs and work toward them with no direc on. Effec ve groups have had autocra c leaders and par cipa ve leaders. Par cipa ve leadership is associated with higher levels of subordinate sa sfac on, organiza on iden fica on and lower resistance to change, even be er than those of laissez-fair leadership.  Task and social behaviors 2 important studies focused on whether effec ve leaders emphasize task ac vi es and assignments or tend to concentrate on trying to keep good rela onships and cohesion among group members, or do both of these things. 24 Ch. 14 – Organiza onal Change Dealing with change is a complex and stressful process. This chapter focuses on the changing nature of work. How our work life is changing Significant change has become a common occurrence in the modern workplace. Here are some specific factors that are driving change in the workplace. 1. Changes in the work itself Increases in IT and a shi from physical ac vi es to intellectual ac vi es have changed the work tasks of workers. Also, “virtual offices” have changed the structure of workplaces. 2. Organiza ons are changing structurally Downsizing, rightsizing, mergers, and acquisi on are always more common. These ac ons have a large effect on the number of employees, the style of managing and employee commitment. Severe compromises and adjustments are o en required. 3. Shi s to a global economy Many companies have an increased need for employees to work in foreign countries as expatriates. This requires employees to cope with extremely different cultures. Moreover, global compe veness has caused organiza ons to constantly find ways to increase their compe veness, changes which lead to subsequent changes in the work processes and procedures. 4. Increased diversity in the workforce The increased diversity within the workforce has been a change that has provided challenges for may individuals and organiza ons. Stages of successful change A useful model for understanding change is the biological perspec ve ( organisms adapt to pressures in their environment). In many cases there are opposing forces that affect the organism and so it simultaneously adapts to numerous powerful opposing forces. This leads to an equilibrium that allows the organism to con nue to exist. To effect change in the organiza on 3 things must occur: 1. Unfreezing: it is required a change is the status quo before there can be a change to a new condi on. Only a er this change in condi on, members are willing to try new ways of doing their work. At this stage pros and cons of changing vs those of not changing should be evaluated. 2. Transforma on: it is the movement that must occur for the organism to change. It is important to use an appropriate change method. 3. Refreezing: the change is made permanent and becomes the new equilibrium point. New behaviors, working rela onships, procedure, etc. must result in rewarding posi ve, not nega ve, outcomes, otherwise people will revert to previous condi ons or look for new ones. Resistance to change There is usually some resistance to change in organiza ons. It may be traced to individual, group, or organiza onal characteris cs. There is a general fear of the unknown and a preference for the known appeared to be opera ng. The organiza onal structure, culture and power structure help to maintain stable behavior pa erns. They are self- reinforcing and thus, poten ally significant barriers to change. Change efforts will not work unless they are compa ble with the organiza onal culture and the power structure. For a change to be effec ve, it must consider the interdependencies that exist, since they may interfere with effec ve change (a change a empted in one area may be resisted by other parts of the system). Task changes, technological changes, and structural rearrangements o en affect each other. 25 The McKinsey 7-S model shows that key interdependencies exist among seven factors that are major determinants of organiza onal success. 1. Structure of an organiza on (organic / mechanis c) 2. Style of management (direc ve / democra c) 3. Shared values of organiza on members 4. Strategy of the organiza on (market focus) 5. Skills of the organiza on (unique organiza onal abili es) 6. Systems employed by organiza on (reward, control, …) 7. Staff (type of people employed and their characteris cs) 5 leverage points cri cal to overcoming resistance to change. Key organiza onal components can be thought of as leverage points for effec ng organiza onal change: 1. The se ng This includes external barriers, aspects of the organiza on’s history, its rela onship with the marketplace and external stakeholders. 2. The organiza on Its strategy (mission, goals, objec ves) and structure are important levers and poten al barriers to change. Goals of growth are o en a source of organiza onal change, but also the structure, the alloca on of resources, rules and policies can be good levers of change as well. E.g. if I want to change toward team working, incen ves to individuals may be dysfunc onal. 3. Management and management skills Implemen ng change in organiza ons requires managerial skills and requires knowledge of cri cal aspects of the organiza on. A key managerial ability is to have a systems perspec ve of the organiza on (such as those of the McKinsey 7-S model). It allows managers to at least consider the role of each of the levers and barriers discussed in this sec on. 4. Culture O en the shared values and beliefs deal with topics like change, organiza onal iden ty, members’ trust and quality of communica ons. Trust is cri cal in organiza ons undergoing change. Schein has iden fied 3 management cultures that can exist at the same me in an organiza on, and can imped its ability to learn:  Operator culture, it focuses on how the job gets done, o en using “local” techniques, and changes to different methods of ge ng things done are rejected.  Engineering culture, characterized by linear thinking and simple cause-effect rela onships, o en excluding humans out of the system design.  Execu ve culture, it has a financial focus and tends toward hierarchical structures. It tends to see people as impersonal resources (like engineering culture). Members of these different cultures o en speak a different “language”. According to Schein, culture is a serious issue in implemen ng a change. 5. Teams and team-building Effec ve change o en requires members to view themselves as part of a team. This, and also par cipa ve management, affects members’ commitment to the change. Helping individuals cope with change Trigger events are unan cipated events in an organiza on’s history that lead employees to take stock of their situa on and interpret the short- and long-term implica ons of the changing context. The resul ng interpreta on of the change event is called the amended mindset. How to assist members in dealing with the change in a personally and organiza onally healthy manner? 26  Before the change event It is the me period when rumours about an impending change abound and complete informa on is not yet available. Pieces of informa on are shared among employees and each one copes with the uncertainty created by the event. Managers should maintain open lines of free and quick communica on and be sure that they will hear and respond to any rumour. Also, they should appear as reliable and approachable source of informa on for their employees.  A er the change event is confirmed The organiza on officially announces that a change will occur. Employees will search for explana ons for the change and will try to understand the personal implica on of the ac on, also by making comparisons with other people or situa ons that they experienced in the past. One cri cal aspect is to manage the announcement of change. Managers can, for example, provide examples of posi ve past experiences and explain why nega ve past experiences will not occur.  During the change The actual events occur and employees are forced to cope with changes in the pa ern of events surrounding their work lives. Managers must manage employee percep ons of how cri cal decisions that relate to the change are made. High employee involvement in change processes is important to enhance the quality of the decision and to influence employee commitment to the change. Managers should put in posi ve light the opportuni es created by any change.  A er the change A final stage is the a ermath, the me period when members assess the event and try to understand what they have learned based on their interpreta on of the experience. This is cri cal for the future, since people evaluate events based on their previous experiences. Openness and honesty of management are cri cal in helping individuals to interpret these events. The establishment of groups to study and draw conclusions is an important symbol of this process. Organiza onal development Change efforts that focus on the whole organiza on fall into the broad category of organiza onal development (OD). OD is concerned with planned change (change that is an cipated, planned, and consciously designed, and that is not a response to an immediate crisis). O en an a empt is made to produce different organiza onal structures and cultures, to support the new systems or approaches. Organiza onal analysis. Organiza on-wide change programs o en begin with some type of ac on research showing where and why a par cular system is not working so well. It is usually done with surveys, interviews, ques onnaires… Once specific problems are iden fied, different remedies may be ini ated to change unsa sfactory condi ons. Organiza onal development methods. OD efforts may be designed using a variety of methods:  Mentoring: a mentor is an older and more experienced organiza on member who helps a younger, less experienced person in the organiza on learn to navigate in the world of work. Can be formal / informal.  Training: different training methods (lectures, case studies, discussions, business simula ons) can be used individually or in combina on to change knowledge, a tudes, or skills.  Team-building: it is the process of involving team members in a series of ac vi es designed to improve the effec veness of the group. Reinforcement of organiza onal changes. Follow up to ensure that the change has been effec ve. It could take up to several years, and many modifica ons may be made before a desirable level of effec veness is achieved. Once the feedback from this evalua on has been provided to the organiza on, change programs are modified and the change process begins anew. Evalua on of organiza onal change programs. Change programs can be evaluated in very sophis cated ways. However, there are difficul es in doing so: it is difficult to isolate the effects of the change; there is o en a me lag between development and evalua on; it is difficult to specify what to measure and to know which of the methods applied produced which effect.